A resolution authorizing the county treasurer to borrow up to $45 million against the amount of delinquent property taxes in all of the county’s 80 taxing jurisdictions was given unanimous approval by the Washtenaw County commissioners at their March 21, 2012 meeting.
After March 1, taxing jurisdictions – including cities, townships, schools systems and libraries, among others – turn their delinquent taxes over to the county, and are reimbursed for that amount. The county treasurer then assumes responsibility for collecting these delinquent taxes. This is a standard procedure that’s conducted annually at this time of year – the borrowed funds are used for cash flow purposes, to fund operations for the first half of the year.
County treasurer Catherine McClary told the board that she projected needing to much borrow less than the $45 million authorized – likely about $26 million. Last year, the county borrowed about $32 million for this purpose.
McClary noted that delinquent taxes are a leading economic indicator, and in that respect the trend was positive. This year, there is a drop in delinquent taxes for the first time since 2005. All jurisdictions saw a decrease, she said.
This brief was filed from the boardroom of the county administration building, 220 N. Main St. in Ann Arbor. A more detailed report will follow: [link]